The Forecast Favours All-Weather Alternatives
Michael Dicks discusses why he thinks an agile liquid alternative approach should fare well in what could be a volatile year ahead.
Go Beyond the Traditional
Capitalise on conditions, good or bad, with a liquid alternatives strategy.
A Cycle of Uncertainty Continues
Amid extensive efforts to tame inflation, the ultimate economic cost of restrictive monetary policy has yet to become apparent against an uneven global backdrop. Still, investors began the year assuming a positive outcome was imminent based on signs of progress in the inflation fight, positioning markets for heightened volatility as new data points test those early assumptions. At the same time, the war in Ukraine remains a geopolitical wildcard with disruptive potential that is as difficult to gauge as its resolution is to predict.
GLOBAL MACRO: THE AGILITY TO TAKE ON VOLATILITY
PGIM Wadhwani Keynes Systematic Total Return Fund is a liquid alternative solution that employs a systematic global macro approach designed to reduce risk, preserve capital, and provide returns with low correlations to traditional markets. The Fund can take both long and short positions in stocks, bonds and currencies. Its agile, research-based investment strategy earned top honours in the ‘UCITS – Macro’ category at the HFM European Performance Awards 2022.
Past performance, including simulated performance, is not a reliable indicator of future performance. Source: Morningstar as of 31 December 2022. Please see bottom of the page for overall Morningstar disclosure. Award source: With Intelligence. PGIM Wadhwani was awarded ‘UCITS – Macro’ winner at the HFM European Fund Performance Awards 2022 for its Systematic Absolute Return Strategy on 29 September 2022, based on data up to 31 August 2022.
FOUR FUND SUCCESS FACTORS
DYNAMIC ASSET ALLOCATION
Directional trading capabilities and a global investment universe consisting of equities, fixed income and currencies enable opportunistic investing across key assets with the flexibility to adjust net exposure broadly.
RELENTLESS RISK MANAGEMENT
A comprehensive focus on risk management emphasizes downside protection, volatility targeting, security-specific risk control, and continuous correlation monitoring to manage contagion risk.
ENHANCED DIVERSIFICATION
Designed to deliver low volatility and low beta to traditional markets via access to uncorrelated return sources diversified by geography, asset class, investment style and timeframe.
EXHAUSTIVE RESEARCH
Drawing on decades of investment, public-policy and academic experience, the investment team performs continuous and exhaustive research to ensure its models reflect high-conviction, leading-edge insights.
Explore Related Insights
Macro Uncertainty Calls for Agility and Diversification
PGIM Wadhwani’s Dr. Sushil Wadhwani, CBE, discusses why agile global macro strategies are attractive portfolio diversifiers through rising rates and inflation.
Manager Minutes - How to Gain Better Diversification
PGIM Wadhwani believes a long-only approach may not work to protect traditional portfolios over the choppy waters to come.
Global Macro Offers a Versatile Vantage Point
PGIM Wadhwani highlights key questions for 2023 and how the flexibility to capitalize on unfolding events can position investors well no matter what emerges.
Continued Uncertainty Strengthens Case For Liquid Alternatives
PGIM Wadhwani discusses the economic outlook, challenging market dynamics and how liquid alternative strategies can help investors gain diversification.
Risks: An investment in the funds involve a high degree of risk, including the risk that the entire amount invested may be lost. The funds are primarily designed to purchase certain investments, which will introduce significant risk to the funds, including asset performance, price volatility, administrative risk, and counterparty risk. No guarantee or representation is made that any fund's investment program will be successful, or that such fund's returns will exhibit low correlation with an investor's traditional securities portfolio.
For Professional Investors only. All investments involve risk, including the possible loss of capital.
The views expressed on this web page are of PGIM Wadhwani and may not be reflective of their current opinions and are subject to change without notice. Neither the information contained herein nor any opinion expressed shall be construed to constitute investment advice or as an offer to sell or a solicitation to buy any securities mentioned herein. Any projections or forecasts presented herein are subject to change. This web page does not purport to provide any legal, tax or accounting advice. Certain information on this web page has been obtained from sources believed to be reliable as of the date presented; however, we cannot guarantee the accuracy of such information, assure its completeness or warrant such information will not be changed. The information contained herein is current as of the date of issuance (or such earlier date as referenced herein) and is subject to change without notice.
PGIM Wadhwani Keynes Systematic Absolute Return Fund – Morningstar measures risk-adjusted returns. The overall rating is a weighted average based on the Fund’s 3-, 5-, and 10-year star rating. Source: Morningstar. Morningstar Stars were calculated using extended performance returns, which links preinception returns to a U.S. based Fund, managed using the same investment approach, with a longer track record which begins 24 Jul 2015. Fees were adjusted in line with the Fund’s current expenses. Ratings 3yr 22/150, 5yr 7/94, 10yr N/A.
Award source: With Intelligence. PGIM Wadhwani was awarded ‘UCITS – Macro’ winner at the HFM European Fund Performance Awards 2022 for its Systematic Absolute Return Strategy on 29 September 2022, based on data up to 31 August 2022. Awards and ratings are subject to change without notice and do not constitute investment advice or an offer to buy any security.
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The information on this website is for informational or educational purposes. The information is not intended as investment advice and is not a recommendation about managing or investing assets. In providing these materials, PGIM is not acting as your fiduciary. This webpage qualified in its entirety by reference to the more complete information contained in the PGIM Funds plc's Prospectus (the “Prospectus”), Supplement (the “Supplement”) and Key Investor Information Document (the “KIID”) (collectively the “Fund Documents”). Capitalised terms used herein without definition have the respective meanings provided in the Prospectus, Supplement and KIID, as applicable. Investors should review the fund documents and seek advice prior to making an investment.
Morningstar Ratings
The Morningstar Rating for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustments for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year(if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
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